Calling it a "reinvention of the company", Microsoft chief executive, Mr Bill Gates, and president, Mr Steve Ballmer, laid out the details of the software giant's widely-anticipated reorganisation into five divisions aimed at better serving its customers.

Although Microsoft has periodically reorganised itself, analysts said the latest effort could bring far-reaching changes in an organisation facing such broad challenges as making computer software easier to use for consumers and more robust for businesses.

"This is not just reorganising the deck chairs," said Mr Chris Le Tocq, an analyst at Dataquest. "It brings a longneeded focus on the customer."

Analysts said the reorganisation could help address a major flaw in Microsoft's approach: the tendency to focus too much on new product features, then badgering customers to upgrade. The reorganisation is aimed at addressing what Mr Ballmer calls Vision Version 2, a shift from evangelising the spread of personal computers to a focus on making better use of the PC and other devices that access information.

Software developers will get a new division entirely devoted to their needs headed by group vice-president Mr Paul Maritz.